India Bolsters Green Hydrogen Mission: Approves 3 GW Electrolyzer Capacity and 50,000 Tons Annual Green Hydrogen Supply for Public Sector

Construction World India

Overview

The Indian government is actively implementing its National Green Hydrogen Mission by boosting domestic electrolyzer manufacturing and expanding green hydrogen supply to key industries. Fifteen companies have been awarded 3 GW of annual electrolyzer manufacturing capacity, while public sector oil companies (IOC, BPCL, HPCL) secured approval for a total of 50,000 tons/year of green hydrogen supply. Additionally, five pilot projects for hydrogen use in steelmaking and plans for 37 hydrogen-fueled vehicles with nine refueling stations are advancing, demonstrating a multi-pronged approach to building India’s hydrogen economy.

In Depth

Background: Implementation Phase of the National Green Hydrogen Mission

The Indian government’s National Green Hydrogen Mission serves as a strategic cornerstone for achieving both enhanced energy self-reliance and decarbonization simultaneously. The success of this mission hinges on concrete policy implementation and robust collaboration with industrial sectors. Establishing domestic production capacity for electrolyzers, which are fundamental to green hydrogen production, and creating stable demand through supply mechanisms for industrial sectors, have been identified as urgent priorities. The government has designed and is actively executing specific programs and incentives to achieve these objectives.

Key Measures and Achievements: Manufacturing Capacity and Industrial Application

As a significant step in the National Green Hydrogen Mission’s progress, the Indian government has vigorously promoted the domestic development of electrolyzer manufacturing capabilities. As part of this, a substantial annual electrolyzer manufacturing capacity totaling 3,000 MW has been allocated to 15 companies. This scale is among the largest globally, signaling India’s strong intent to become a leading producer of electrolyzers. Furthermore, to strengthen green hydrogen demand, major public sector oil companies—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—have received approval for an aggregated supply of 20,000 tons of green hydrogen annually. Numaligarh Refinery Limited has also secured approval for 10,000 tons of green hydrogen per year, expecting these companies to utilize hydrogen in their refineries to drive decarbonization. Additionally, five pilot projects exploring hydrogen utilization in the steel sector have been approved, and in the mobility sector, plans are underway to introduce 37 hydrogen-fueled vehicles supported by nine hydrogen refueling stations.

Impact and Future Outlook

These concrete measures represent crucial building blocks for India’s emerging green hydrogen ecosystem. Electrolyzer capacity is key for decarbonization. The domestic manufacturing of electrolyzers strengthens the supply chain and reduces costs, enhancing the cost-competitiveness of green hydrogen production. The mandated supply of green hydrogen to key industries and the promotion of pilot projects are expected to generate stable demand and accelerate market expansion. Hydrogen utilization, particularly in the steel industry and transport sector, has the potential to make a significant impact on India’s emissions reduction targets. However, challenges such as securing financing for large-scale project implementation, accumulating technical know-how, and accelerating infrastructure development remain. Through continuous collaboration between the government and industry, India is anticipated to vigorously pursue its path toward realizing a green hydrogen economy.